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4B Sales Tax Corporation Minutes - 07/24/2003T MINUTES OF THE 4B SALES TAX CORPORATION July 24, 2003 Present: Rick Boone, President § Ray Gonzalez, Vice President § Benay Ayers, Secretary Treasurer § Corporation Board Members Bill Altman § Arthur Bea Williams § Tommy McCulloch § Jim Berzina, City Manager § Matt Benoit, Assistant City Manager § Linda Merrill, Recording Secretary § David White § Guest Brie Butler, Times Record News § Media AhcPnt- Leon Mallonee § Corporation Board Member Call To Order. President Rick Boone called the meeting to order at 8:37 a.m. He noted that Leon Mallonee would be unable to attend the meeting. 11. Approval of Minutes (March 14, 2003). Tommy McCulloch moved, seconded by Benay Ayers, that the minutes of the March 14, 2003 meeting be approved. The motion carried unanimously. III. Consider Proposed Budget for Fiscal Year 2003 -2004. Matt Benoit stated the proposed budget consists of sales tax collections, showing a 1.69% rate of growth that is solely based on current year projections. The interest earnings are based on a monthly average to date. A/ 4B Minutes — July 24, 2003 2 The only budgeted expenditure, Mr. Benoit continued, was the final debt service payment for the library renovation. This is the seventh and final year of that project, and the payment is in the amount of $348,075. He noted that he had not recommended any budget authority for the radio projects. He is still seeking more firm prices and will provide information to the Board at a later time. Ms. Ayers moved that the budget be approved, seconded by Ray Gonzalez. The motion carried. IV. Consider Officer Nominations and Elections Mr. Benoit stated the current officers are Rick Boone, Chairman; Ray Gonzalez, Vice - President; and Benay Ayers, Secretary- Treasurer. Tommy McCulloch nominated the current slate of officers to continue in their current positions. No other names were submitted for consideration. All voted in favor of the current slate. V. Consideration Presentation on Possible Plan for a Recreation Center. Jim Berzina then addressed the Board concerning the possibility of building a City Recreation Center. The Park Board has identified a recreation center as its number one priority. The approach today is to determine the feasibility of building a facility that will serve as the home of the city's recreation programs. This was somewhat accomplished with the second floor addition to the Kemp Public Library. But the Senior Zone has pretty well taken over that floor due to its tremendous success. The success of the Senior Zone is what was hoped, but it still creates a problem for other activities. What was expected to be a membership of 600 to 700 members has grown to 1,800 members. Consequently, the various recreation programs are semi - orphaned. Approximately one -half of the recreation programs are put on by outside facilitators, such as dance programs, taekwando, and various other activities. The City generates the classes, and outside contractors do the teaching. A good number of those classes are self- supporting. He believes the timing the discussion of this project is now. There have been concerns expressed that the construction of this public center would have the effect of putting private facilities out of business. That is not the purpose. The City wants to accommodate programs currently in existence. There is a need to get a concept plan as to what should be in the building, and the associated costs. Over a year and a half ago, he spoke with people at the state highway department about using the site north of the grain elevator. V 4B Minutes — July 24, 2003 3 Mr. Berzina stated there has been talk in the past that a recreation center is needed in every quadrant of the city. He disagrees; instead, the City simply needs one successful center. Otherwise, the City would be in a position of having to compete with other organizations, such as the Boys and Girls Clubs and the YMCA, as well as other private facilities. He states the reasons the referenced site looks promising include: (1) the State will not use it as part of the Kell plan, (2) it is centrally located, and (3) it appears feasible. He also noted there is a possibility a swimming center would be included. There have been past discussions with Midwestern State University regarding its students serving as interns for class credits. Tommy McCulloch asked if most comparable cities have such a facility. Mr. Berzina states it is his understanding they either have such a center, or are building one. Ms. Ayers asked what programs the Senior Zone has displaced from the second floor of the library. Mr. Berzina replied the gymnastics program, dance classes, arts and crafts, and taekwando. Ms. Ayers asked if these are all programs the Boys and Girls Clubs and the YMCA do not offer. Mr. Berzina stated they do offer these programs, but these are also classes that the City has offered for years. Arthur Bea Williams stated she is speaking as a City Councilor and City recreation class user. She states participants are at the mercy of where a certain program is conducted as to the hours of operation and quality and availability of equipment. She believes the construction of the center should be seriously considered. Chairman Boone asked if a membership fee would be charged. Mr. Berzina stated he did not have the answer to that question now. This needs to be discussed along with the line of programs offered, the perception of competition with private interests, the costs to operate, and the space required for such a facility. Ms. Williams asked if TxDOT would donate the land. Mr. Berzina stated that if that is not an option, there might be a possibility of a 99 -year lease. He stressed that selection of this land for the center is not a "done deal." Mayor Altman agreed; stating that, although this site has good attributes, there are other possible locations. Ms. Williams opined that this location is central in the City, and no one's residence would have to be taken for the project, as has been the case with past City projects. Chairman Boone urged Mr. Berzina to keep the Board updated on this idea. VI. Consider Updated Financial Forecast If 4B Minutes — July 24, 2003 4 Matt Benoit presented a handout detailing the "Financial Forecast Highlights." (A copy is attached for further detail.) This financial information detailed the beginning available balance of June 2003 of $6.8 million. It included beginning encumbrances, the construction costs for the Municipal Public Safety Training Center, the Radio Communications Project, and the Computer Aided Dispatch /Records Management System. The handout detailed information regarding possible debt issuance for the training center and portable radios, CAD /RMS servers and wiring, training and networking; as well as debt issuance for fiber link to the training center and mobile radios, and for the two -way radio infrastructure. The total annual obligation for debt is projected at $1,120,501, representing 41.2% of the estimated annual sales tax collections. The lowest project available cash balance is $1.2 million, by September 2006. Theoretically, if there were no other project approved, the balance would do nothing but increase. And, by that time, a number of projects would have been accomplished. Mayor Altman discussed the proposals for the Radio Communications Project. He acknowledged that these may be projects that are badly needed, but he is not sure the need is great enough to pay whatever the companies ask. He is disappointed in the pricing proposals. He stated that if there is no serious negotiation on the price, he, as Mayor, would attempt to kill the project for a year or two. Mr. Berzina concurred with the disappointment in the costs; noting that maintenance and equipment replacement is very costly. Mayor Altman believes there is not enough competition in the industry. Various companies merged for efficiency, but the mergers did nothing to affect the cost of the product. He praised Mr. Benoit, and staff from the police department and Information Systems for the time and effort spent on these proposals. Ms. Williams acknowledged that it is a big step for Wichita Falls, but asked if it was a big product for the companies? Mr. Benoit stated he believed so. Mayor Altman noted that it is a big deal for North Central Texas. Whatever decision the City makes will likely affect the decisions made by the area's smaller cities. Ms. Ayers reiterated Mayor Altman's appreciation of the hard work of the staff, and noted the Board will rely on their expertise. VII. Confirm September 4, 2003 Meeting. Mr. Benoit stated the 2001 Legislature amended part of the Tax Code. There is now a requirement for a 60 -day lapse between notice of a meeting and expenditure of monies approved to be spent at such meeting. He stated the Board went through this process with the Little Adobe project. He suggests posting a meeting notice for 4B Minutes - July 24, 2003 5 September 4, to allow for at least 60 days to elapse before approaching the City Council with a recommendation on the radio communications project. There is no obligation by the posting of this notice; the notice can be pulled, or amended within 72 hours of the meeting time. Otherwise, this posting will allow for the Board to meet the timeline requirements. The Board concurred with the September 4 meeting date. VIII. Adjourn. The meeting adjourned at 9:28 a.m. Linda Merrill Recording Secretary Benay Ayers Secretary Treasurer T 4B Minutes — July 24, 2003 .luly 24, 2003 4B Board of Directors Financial I-orecasl Highlights tune- 2003) Beginning Available Balance Taken from ,little Financial Statement 2. (Jime, 2003) Beginning Encumbrances Result of analvsis of actual obligations, not what was actually budgeted. Examples include Communications Consultant, Municipal Public Safetv Trainin, Ccnter (MPSTC) Architects and MPSTC construction fees. 3. (.tune, 2003) MPSTC' Construction Assumes average construction invoice for first 7 months of the project. We arc paying cash fir this, and have the option reimbursing ourselves for these expenditures when debt proceeds are received. 4. (September, 2003) - Radio Project Down Payment Motorola is used purely as an example! A selection has not been made. Payments arc made in conjunction with payment schedule contained in proposals. 5. (October, 2003) - Computer Aided Dispatch (CAD) /Records Management Systems Down Payment -- Tiburon is used purely as an example! A selection has not been made. Pavments are in conjunction with payment schedule contained in proposals. 6. (March. 2004) - Series "D" Debt Service This is proposed debt issuance for the MPSTC. Series "D" is a 20 -year certificate of' obligation. Total principal amount is $2,072,206 (4.79"„). Total annual obligation is $163,331. $54,444 is paid in 1(1arch, and $ l 08,887is paid in September. 7. (March. 2004) - Series "A" Dcbt Service This is proposed debt issuance for portable radios CAIN /RMS servers and wiring. user training and lire department networking. Series "A" is a 5 -year certificate of obligation. Total principal is $1,891,01)6 (3.67;%). 'Dotal annual obligation is $420,854. 5140,285 is paid in March, and $280,569 is paid in September. 8. (March, 2004) - Series "B" Debt Service This is a proposed debt issuance for fiber link from P.D. to VIPSTC and mobile radios. Series "B" is a 10-year certificate of obligation. Total principal amount is $1,131,353 (:1.95'%)). Total annual obligation is $139,139. $46,380 is paid in March, and $92,759 is paid in September. Q. (March, 2004) - Series ­C­ Debt Service This is proposed debt issuance for two -way radio infrastructure (towers, microwave hops, etc.) Series "C" is 15 -year certificates of obli_�ation. Total principal amount is $2,741,967 (4.4435). " fotal annual obligation is 5254,263. $84.75.1 is paid in March, and $169,505 is paid in September. Total annual obligation fir debt is $1,120,501. That amount represents 11.2% of the estimated annual.cales tav collections. no I 4B Minutes — July 24, 2003 I \hi�, , 2n x-11 No:, iur NIPS]'(' LXJWI-Idil( I-CS Otll.l 01,111 C )II-SIRM1,111, llc!;,: Ci pill>i .17e p:ud III fol such 'Is III +.jj)lllellt. c1c, n -I!, . . - i<: 6d I k) sys I c I I I is I I I 'sIa I I cd. I CS I "Y alld I it, C, WnLuN, 1005, (Awnpulcr :Aided Dispatch mid Records N'bI4l.'-CIlICIl1 �",S(CIIIS 11'c ilmallel wwd TO iwo Lump hmn pa"nem of "20WO in included 1,61. \C:11-'s 2-5 of i OLIk- 11cgin Inslid 1,11 Ion of N'lohilc Data Terminals. S.')'000'000 hrc,Icet paid ,hill) t.-:Ish (11 11 off\N:tr-- :Iiikj lap lops) I-.' 2''(W) - I o%\cs! cStimalcd ;ICiui:lblc Cash for the 20101-20o4- I'cal Y'. it 15 thunmn VAI i o" c ymmmod avmhNc vwh bahme A We 1101% FAN yal! Io, (Sepl-, !I I 6h!: , ?i It)()) - I I estimated avada N C cash b it I av I -,'c Io I' the I( 1:1s'cal 1 -I!. 7